Sparrow Carson Hospital could lose its Medicare partnership with the federal government after an investigation found the hospital is not compliant with infection control standards.(Photo: Getty Images)

Note: This story has been updated to clarify that the nurse anesthetist suing Sparrow Carson Hospital was working under contract.

CARSON CITY -- On Nov. 2, a nurse anesthetist at Sparrow Carson Hospital received word that his complaint had prompted an investigation by the State of Michigan into a physician at the hospital.

The next day, Jonnie Vanderhoefwas out of a job.

In a Feb. 1 whistleblower lawsuit, Vanderhoef claimed Sparrow Carson Hospital fired him because he expressed concerns regarding the hospital and one of its orthopedic surgeons to state officials.

The suit — which names Sparrow Health System, Sparrow Carson Hospital, Sparrow Clinton Hospital, and Sparrow Ionia Hospital — was filed less than a week before the Centers for Medicare and Medicaid Services issued a letter indicating that Sparrow Carson Hospital’s Medicare partnership could be terminated due to infection control issues.

Vanderhoef’s complaint filed with the state in October 2017 marked the fourth time in four years that a complaint was made to the state regarding orthopedic surgeon Dr. Raymond Phillip Allard, according to state records obtained by the State Journal through a Freedom of Information Act request.

Allard, when contacted by the State Journal Wednesday, declined to comment for this story.

Sparrow officials declined to answer additional questions from the State Journal.

Lawsuit alleges firing was retaliatory

In his lawsuit, Vanderhoef said he appealed to hospital officials on several occasions regarding Allard’s “medical practices, his complete disregard for patient safety, and his exceedingly high infection rate.”

As early as May 8, the lawsuit says, Vanderhoef met with the hospital’s chief executive officer Matthew Thompson to voice concerns about Allard. But, according to the lawsuit, Vanderhoef’s concerns largely were ignored even when he threatened to go to government authorities.

“From May 8, 2017 to September 26, 2017, Dr. Allard had no less than 18 infections related to surgeries or procedures he performed,” the lawsuit said.

Vanderhoef contacted the state in October with his concerns. The state confirmed to him that an investigation had begun at the hospital on Nov. 2. On Nov. 3, Vanderhoef was pulled into a meeting with hospital leaders and fired, according to the lawsuit.

During that meeting, hospital officials asked Vanderhoef about photographs he had of an infection he believed was caused by Allard’s surgery. Hospital leaders, according to the lawsuit, told him to delete the photos, which Vanderhoef has said he received from a patient concerned about Allard.

On Nov. 13 and Nov. 15, Vanderhoef was informed his contracts with Sparrow Clinton Hospital in St. Johns and Sparrow Ionia Hospital would end, according to the lawsuit.

Sparrow spokesman John Foren maintained Vanderhoef was not a Sparrow employee, but an independent contractor who had an agreement with Sparrow Carson to provide services.

Vanderhoef had worked in some capacity for Sparrow for more than nine years, according to the lawsuit.

“Sparrow unlawfully discharged Mr. Vanderhoef from all of its locations mere days after his report to LARA, and shortly after LARA's acknowledgment that it would conduct an investigation,” according to the lawsuit.

Vanderhoef is seeking damages of more than $25,000 plus attorney fees and costs.

Four years of complaints

After receiving Vanderhoef’s complaints in October and November, the state Department of Licensing and Regulatory Affairs began at least two investigations; one into Allard and another into the hospital.

The investigation into Allard is ongoing, according to LARA officials; but another investigation, conducted on behalf of the Centers for Medicare and Medicaid Services, has already resulted in action against Sparrow Carson Hospital.

In a Feb. 6 letter, CMS notified Sparrow Carson Hospital that it must correct issues with infection control or lose its Medicare partnership by May 7.

But, according to state records, complaints regarding Allard had been filed prior to Vandehoef’s, in 2014, 2015 and 2016.

In 2016, a complaint prompted LARA to issue a subpoena to Allard and Sparrow Carson Hospital for a patient’s medical records, X-ray films, billing records and incident reports.

The content of the original complaint was either redacted or not included in the documentation provided to the State Journal, but a June 9, 2016 letter indicates the Osteopathic Medicine Board determined there wasn't enough evidence to authorize an investigation.

“…after a thorough review of the matter, we have determined that a violation of the Public Health Code cannot be established,” a letter from LARA to Allard read.

The content of a 2015 complaint against Allard is unclear based on the redacted documents provided to the State Journal. According to the complaint history, the 2015 case was investigated and closed with “No action taken” four months after the initial complaint was received.

A 2014 complaint, according to Allard’s complaint history, prompted LARA to look into Allard’s medical education, specifically as it related to a vacated conviction from 1986.

In 1986, Allard pleaded guilty to a felony count of mail fraud because of misrepresentations he made regarding his medical education, according to court records.

Allard was attending medical school at the Universidad del Noreste in Tampico, Mexico, when “he discovered what he thought as a quicker way to achieve his career objective,” according to a 1991 appellate opinion from U.S. District Judge Ernest Torres.

“He made arrangements to purchase a diploma from the Universidad Centro de Estudios Tecnologicos (“CETEC”), located in the Dominican Republic, without attending any classes there,” Torres wrote.

Allard then represented that he had completed a number of courses through CETEC when he took the Educational Commission for Foreign Medical Graduates exam, when he applied to Worcester City Hospital for a position as an intern, and when he applied to the medical board for a limited license to practice as an intern. He eventually was hired by Worcester City Hospital.

Allard pleaded guilty to felony mail fraud in connection with the misrepresentationon May 27, 1986, but the conviction was vacated in 1988 because of a change in the definition of mail fraud, and again in 1991 when Allard asked to withdraw his plea.

LARA noted U.S. attorneys dismissed the charge against Allard following the vacated conviction in 1991, according to a 2014 complaint report determining that no action would be taken against Allard.

In his 1993 application for a license to the Michigan Board of Osteopath Medicine & Surgery, Allard said he had never been convicted of a misdemeanor or felony for which he could have gone to jail, according to documentation from LARA.

‘Bizarre’ behavior prompts report

“Dr. Allard continues a history of excessively high surgical complications, including severe infections,” he wrote in his complaint form. “His behavior and deviation from accepted medical practice has become more bizarre in recent weeks.”

In his complaint submitted to the Healthcare Facilities Accreditation Program, Vanderhoef repeated those beliefs and said Allard had a high rate of surgical complications, “including severe, chronic surgical wound infections on his Total Knee Arthroplasty patients.”

“In recent months he has been demonstrating more and more bizarre and alarming behaviors, including intentionally leaving surgical sponges inside an infected surgical wound and closing it,” Vanderhoef wrote. “He was ordered to return the patient to the (operating room) that day to remove them.”

In both reports, Vanderhoef said other staff have expressed concerns, “but fear to take action.”